October 30, 2013

Diwali 2013: Stocks to BUY

First of all, we would like to wish you and your family a "Shubh Diwali" and lots of happiness, wealth and good health! Diwali, the festival of lights has a lot of importance in the financial and business community. The stock markets in India have a special trading session on the occasion of Lakshmi Puja which is known as "Muhurat Trading". On this day, investments are made which an investor generally holds for years and for purposes such as education of his children, their marriage and other life goals. We at DalalStreetBulls would also like to thank all our blog readers and visitors who have shown great interest in our blog and thus have helped us generate thousands of visits every month! We will work towards growing the count and come up with some great trades in the coming year too! So this Diwali, which are the stocks which one should be looking on for long term? Here is a list of few stocks which we find really good for long term (5+ years)

1. PNB
CMP: 500
P/E: 3.7
Dividend Yield: 5.4%

2. ANDHRA BANK
CMP: 54
P/E: 2.6
Dividend Yield: 9.29%

All PSU banks are trading at dirt cheap valuations as they are facing issues of NPA's which over a period of time will get right. And when one of the country's most trusted banks are trading at P/E's of 3-4, you must not miss the opportunities before they slip away.

3. BHEL
CMP: 140
P/E: 5.53
Dividend Yield: 3.88%

The capital goods giant has seen the wrath of a badly hurt global economy but as conditions improve, BHEL will be a really great stock to hold.

4. TV18
CMP: 23

Though there are no highlights/attractions in the financials, the media industry is all set for a boom in the coming decade and TV18 could be a good gainer in this period.

In the current scenario, all these stocks are under-performing and the ideas are for 5+ years views. There may be sharp downsides in the short term which can be used for adding on the positions.

5. AMTEK AUTO
CMP: 66
P/E: 3.64
Dividend Yield: 0.75%

A fundamentally strong company which would do well in a booming car market. With a health amount of reserves, the debt of the company doesn't appear to be a worry yet. It does get cyclical and so, we believe that at these valuations, it is a good hold for 5+ years view.

6. YES BANK
CMP: 367
P/E: 9
Dividend Yield: 1.63%

7. TATA STEEL
CMP: 329
P/E: 6.31
Dividend Yield: 2.43%

No other brand in India is as trusted as TATA is! This steel giant has taken a hit no doubt because of the slowdown but this opportunity is not one to miss! Though in the short term, we believe that this stock can be bought near 250-270 levels, it makes a good long term investment.

HAPPY INVESTING!

Disclaimer: The above recommendations are made solely on the basis of the data available on the internet, any investments made on the above recommendation has risks involved. DalalStreetBulls is not responsible for any profits/loss incurred directly or indirectly based on the above recommendations.